Why It’s Better to Have an Insurance When Renting a Car

Intending to rent a car when you go for your next vacation? There are many advantages that you can get from renting a car instead of driving your vehicle when going on a vacation. However, it is not surprising that the car renters will ask you to purchase insurance first before you rent a car. For instance, car accidents are common and it is important to get protection when you decide to rent a car. Read on to learn why it is better to have insurance when renting a car.

Liability Protection

In most countries, car rental companies are compelled by the law to have liability insurance. You can consider buying the rental company’s offering if you do not have a liability policy. However, you should know that the insurance policies offered by rental companies vary significantly, but the most important thing is to ensure that you have coverage. Anything can happen on the road while you are using a rental car and this is the major reason why you need protection.

Choose The Right Insurance

There are different types of auto insurances that you can consider, but the good thing is that you should shop around to get the right policy that suits your needs. Financial experts from MyChoice.ca explain that there are different types of auto insurance policies that are tailored to suit the needs of different people. To get the best package, you need to provide your details, then get quotes from various insurance providers. The auto insurance rates are determined by factors such as a province, the city as well as a car brand. When you identify the right policy that suits your needs, you can purchase it. It is important to know what the insurance covers, especially if you are driving someone’s car.

Insurance By A Car Rental Company Can Be Cheaper

Depending on the nature of your personal insurance, you may still be compelled to pay the deductible in case of an accident. However, it can be cheaper to buy insurance coverage through a rental company, especially if it is for a short-term basis. You can also be subjected to premium hikes if you are using your car insurance. This is not the case, especially when you get your insurance coverage through the rental car. In the case of minor accidents, the car rental company may not report you to your insurance company.

Your Insurance Might Not Cover The Type Of Rental Car

The other thing that you should know is that your personal auto insurance might not cover the type of car that you rent. If your insurance covers vehicles that are different from the cars offered by rental companies, then it might not apply. If you own a different car from the ones offered by rental companies, then you will be responsible for any damage should you be involved in an accident. In such a situation, you will need a waiver from the insurance offered by a rental company.

Additionally, the other thing that you should know is that your auto insurance does not include loss of use. If you are involved in an accident using a rental car, your policy does not provide coverage and this is the reason why you need to get coverage from the car rental company. A damage waiver that is purchased through the insurance company will cover the costs related to loss of use. This is when the vehicle cannot be used as a result of damage from the accident.

Purchase The Collision Damage Waiver (CDW)

Car rental companies will compel you to buy a CDW and when you do that, it will not charge you the damages that might be caused to a car rental. However, there are just a few exceptions like gross negligence as well as other aspects like tire damage that you may be responsible for. What you need to know is that the CDW terms and conditions differ from company to company. The CDW policy you get from a car rental company can protect you since you just turn the car in and go.

When renting a car, it is important to have insurance since it helps to provide you coverage in case the unprecedented things like an accident happens. In other countries like Canada, you may not drive a car without insurance, whether the vehicle is yours or you are renting. While your auto insurance can offer you protection in different states when you decide to rent a car, this might not apply in all areas. The car renters may request you to get the appropriate insurance when you are renting a car.